Prysmian Q1 2025 slides: Transmission segment powers 5% organic growth

Introduction & Market Context

Prysmian SpA (BIT:PRY) released its Q1 2025 financial results on May 8, 2025, showcasing solid overall performance driven by exceptional growth in its Transmission segment. The cable manufacturer reported a 5% organic growth rate, with adjusted EBITDA reaching €527 million, representing a margin improvement to 13.1% at standard metal prices compared to 12.4% in the same period last year.

The company’s stock has performed well in 2025, trading at €55.42 as of May 16, up 0.36% for the day. Prysmian’s share price has demonstrated significant strength over the past year, currently trading well above its 52-week low of €38.57, though still below its 52-week high of €72.76.

Quarterly Performance Highlights

Prysmian’s Q1 2025 results revealed mixed performance across segments, with the standout being the Transmission business. The company reported total revenues of €4,771 million, up from €3,687 million in Q1 2024, representing 5.0% organic growth. Adjusted EBITDA increased to €527 million from €412 million in the same period last year.

As shown in the following key highlights slide, the company maintained strong profitability while advancing its sustainability goals:

Despite the overall growth in adjusted EBITDA, net income decreased to €155 million in Q1 2025 from €190 million in Q1 2024. Group net income similarly declined to €150 million from €185 million year-over-year. This reduction in profitability occurred despite revenue growth, suggesting increased costs or other factors affecting the bottom line.

The detailed profit and loss statement provides further insight into the company’s performance:

Segment Analysis

The Transmission segment was the clear star performer in Q1 2025, delivering exceptional results with 57.2% organic growth. Revenues in this segment increased to €743 million from €474 million in Q1 2024, while adjusted EBITDA nearly doubled to €124 million from €62 million. The segment’s margin improved significantly to 16.9% from 13.1% at standard metal prices.

The following slide illustrates the Transmission segment’s impressive performance:

Other segments showed mixed results:

• Power Grid maintained stable performance with a slight margin improvement to 15.2% despite a 2.2% organic revenue decline
• Industrial & Construction experienced a slow start but recovered in March, with a 1.0% organic revenue decline but slight margin improvement to 11.6%
• Specialties faced challenges with a 4.3% organic revenue decline and margin contraction to 11.5% from 12.6%
• Digital Solutions showed positive momentum with 3.4% organic growth and margin improvement to 13.2% from 10.8%

The company’s financial highlights by segment demonstrate these varying performances:

Financial Position and Cash Generation

Prysmian demonstrated excellent cash generation capabilities, with free cash flow over the last twelve months reaching €998 million. However, net debt increased significantly to €4,884 million as of March 31, 2025, compared to €1,693 million a year earlier, primarily due to acquisitions and other financial activities.

The following waterfall chart illustrates the company’s cash flow dynamics:

The balance sheet remains solid despite the increased debt level, with total shareholders’ equity of €5,170 million as of March 31, 2025, up from €4,284 million a year earlier. The company maintains a diversified debt maturity profile with an average maturity of 4.1 years and approximately 80% fixed-rate debt.

The detailed balance sheet provides a comprehensive view of Prysmian’s financial position:

Strategic Initiatives

Prysmian continues to advance its strategic initiatives, with the Channell acquisition on track for closing in Q2 2025. This represents the company’s first major acquisition in the Digital Solutions segment, with over 90% of Channell’s revenues coming from the USA.

The following slide highlights the strategic importance of the Channell acquisition:

Sustainability remains a core focus for Prysmian, with the company accelerating its Net Zero target from 2050 to 2035. The company reported that 42.9% of its revenues are linked to sustainable solutions, while recycled content increased to 18.8% from 16.2% in FY 2024. Greenhouse gas emissions (Scope 1&2) have been reduced by 37% compared to 2019 levels.

The ESG highlights demonstrate Prysmian’s commitment to sustainability:

Forward-Looking Statements

Prysmian confirmed its 2025 guidance, targeting adjusted EBITDA of €2,250-2,350 million and free cash flow of €950-1,050 million. The company also aims to reduce greenhouse gas emissions (Scope 1&2) by 38-40% compared to 2019 levels.

As illustrated in the following guidance slide, the company remains confident in its outlook for the remainder of 2025:

CEO Massimo Battaini expressed satisfaction with the company’s performance, particularly in the Transmission segment, stating during the earnings call: "We are super satisfied by the performance of transmission." He also highlighted the restoration of performance levels in March and April.

With a substantial backlog of approximately €17 billion in the Transmission segment and continued focus on operational excellence, Prysmian appears well-positioned to achieve its 2025 targets despite the mixed performance across segments in Q1.

Full presentation:

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